Cyprus Shutdown: Did the FDIC Orchestrate It?

This is the third consecutive week that I am writing to you about Cyprus. Enough has been said about this already, but the gravity of the situation behooves me to caution you about what is not being talked about in mainstream media.

Last week, I was warning you about the possibility of whether the United States will become Cyprus someday. Little did I know that the Cyprus plan was in fact co-authored by our very own Martin Gruenberg, head of the FDIC. On Dec. 10, 2012, the FDIC and Bank of England (BOE) presented a paper in Basel, Switzerland, about financial stability wherein they specifically laid out plans of how they can completely take over your bank accounts.
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The acts that are already in motion now would deliver clear title to the banks of depositor funds. What most depositors do not know is that the banks legally own the depositors funds as soon as they are deposited in the bank accounts. Now the depositors become unsecured creditors to the banks holding IOUs. The banks are obliged to pay the IOUs on demand.

Under the FDIC-BOE plan, our IOUs would be converted to bank equity shares. Banks would get our money and we would get the shares. Now in case of a major financial calamity, the banks’ equity would be worth virtually nothing or would take several years before we could realistically see the value of our deposits being returned.

In Cyprus, we have so far seen that the sanctity of the FDIC equivalent limits being maintained. The current solution is that deposit holders at or under 100,000 euros will not be affected by the money seizures. The larger deposit holders will see their cash being frozen and they will receive share in the bank.

Now one of them is bankrupt and one will be wound down. So the shareholders will be wiped out and lose everything. In the case of the other bank, it may be years or decade before they get their money back.

In the United States, the FDIC-BOE plan has “no exception” to the seizure of our money. There is no amount of money that would be protected by FDIC limits. All of our cash would be gone, without exception. When the cash deposits are converted to stock in the banks, they would no longer be covered by insurance and would be at risk of being wiped out.

The shepherd guarding the sheep would become the wolf in disguise about to devour our bank deposits. The FDIC was created to insure and protect our bank accounts. If FDIC-BOE plan passes, the FDIC would no longer need to protect our funds, they could simply confiscate them.

I have often promoted buying gold and silver and storing it away in your bank lockers. Here is another mind boggling fact: the Department of Homeland Security has already informed all banks that in cases of “national security” threats (massive bank failures would constitute national security crisis), they can seize all bank lockers without warrants. This order has already been given to the banks.

What was unthinkable once may now become a very viable option for the government. President Barack Obama had summarily dismissed the notion of nationalization of banks as an “unpalatable and unacceptable” solution to the American masses.

If we have a major bank failure in the United States, the nationalization option may not be off the table along with a seizure of the bank accounts.

I would urge you, as I did last week, to spread out your investments to multiple assets and multiple jurisdictions to enable you earn a high return as well as protect your wealth from the preying hands of the governments. Choose countries that have surpluses or small deficits, as those governments will be the last to pass draconian laws.

Little did I know that the Cyprus plan was co-authored by Martin Gruenberg, head of the FDIC. On Dec. 10, 2012, the FDIC and Bank of England presented a paper about financial stability wherein they specifically laid out plans of how they can completely take over your bank accounts.